John Shadegg: Geithner Needs to Explain Shift

Congressman John Shadegg (R-AZ) wants to know why Treasure Secretary Tim Geithner isn’t facing tough questions over his apparent change in positions on China’s request to abandon the dollar as the global currency:

(CNSNews.com) – An Arizona congressman wants to know why Treasury Secretary Timothy Geithner isn’t facing tough questions over his apparent about-face on whether the U.S. would consider China’s request to abandon the dollar as the global currency, in favor of a mix of currencies.

Geithner told Congress under oath Tuesday that he wouldn’t consider China’s proposal to shift away from the U.S. dollar toward a world currency — then the following day (Wednesday) said the U.S. would “be open” to the idea.

“Beginning with his tax difficulties, and continuing through the puzzling narrative of when and what he knew about the AIG bonuses, Treasury Secretary Geithner has done little to inspire the confidence of the American people,” said Shadegg. “Oddly, Secretary Geithner continued his bizarre and puzzling conduct this week, making flatly contradictory statements about the dollar in a span of only 24 hours. This weakens confidence not only in him, but in the currency he is entrusted to protect.

Shadegg isn’t alone in wanting answers, Rep. Michele Bachmann (R-MN) has introduced legislation that would bar the dollar from being replace by any foreign currency:

“Yesterday, during a Financial Services Committee hearing, I asked Secretary Geithner if he would denounce efforts to move towards a global currency and he answered unequivocally that he would,” said Bachmann. “And President Obama gave the nation the same assurances. But just a day later, Secretary Geithner has left the option on the table. I want to know which it is. The American people deserve to know.”

My guess is that Sec. Geithner simply misspoke but at the same time I’m not sure how he could make that mistake.